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Friday, May 24, 2024

Cosmetics distribution center in Wake Forest closes, 63 laid off

A cosmetics distribution center in Wake Forest closed abruptly last week, laying off 63 workers, according to a filing with the N.C. Department of Commerce.

The Body Shop International, a London-based company, filed for administration under United Kingdom insolvency laws, less than three months after it was bought by private equity firm Aurelius Group.

Jennifer Wale, the company’s human resources director, wrote to state officials that this decision caused “a catastrophic situation for the company because all the funding for the company and its U.S. operations were immediately cut off, with no advance notice.”

Wale wrote that The Body Shop had failed to fully pay vendors and other financial obligations before the filing.

She added that because the company does not recognize bumping rights for its employees, the terminated employees are not permitted to displace remaining employees based on seniority or any other factor.

The cuts include 21 operations administrators, according to the filing.

The Body Shop, which sold cosmetics, skin care products, and perfumes, was founded in 1976 in Brighton, England. The company said its products were sold in about 3,000 stores.

Once owned by French cosmetics company L’Oreal, it was acquired by Aurelius Group in November 2023 for just more than $250 million. In January, the company announced it was selling a chunk of its international business to a German businessman.

Its U.S. operations filed for U.S. Bankruptcy Court protection last week and ceased operations.

 

Chris Roush
Chris Roush
Chris Roush is executive editor of Business North Carolina. He can be reached at croush@businessnc.com.

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